CBAI Participates in FDIC Deposit Insurance Applications Roundtable

FDIC1The Federal Deposit Insurance Corporation (FDIC) hosted a Deposit Insurance Applications Roundtable on March 22, 2019, to obtain an array of views and suggestions regarding the deposit insurance applications process. Those attending included a variety of individuals and firms both interested in and familiar with the organization of newly chartered (de novo) banks. This roundtable was part of a nation-wide outreach with meetings in each of the FDIC’s six regional offices. Community Bankers Association of Illinois (CBAI) SVP Federal Governmental Relations, David Schroeder, participated in the Roundtable at the FDIC’s regional office in Chicago.

CBAI has consistently maintained that de novo community banks are vitally important to maintaining a strong, growing, evolving and vibrant banking profession. While the FDIC halted de novo bank formation after the financial crisis, there are now encouraging signs of a more positive reception for new deposit insurance applications.

FDIC Chairman, Jelena McWilliams, recently stated, “De novo activity is not where it should be. De novo banks are a key source of new capital, talent, ideas, and ways to serve customers. As FDIC chairman, one of my priorities is to encourage new bank formation. The FDIC needs to do its part to make that happen.”


The Roundtable included an overview of deposit insurance applications by the FDIC; thoughts about improving the effectiveness, efficiency and transparency of the application process; a panel discussion; and a discussion of concerns specific to specialty banking models.

As part of the Chairman’s commitment to increase de novo activity, the FDIC is seeking public comments on what steps the FDIC can take to improve the application process. CBAI has responded to the Request for Information (Read CBAI Comment Letter) and encourages those interested in sharing their thoughts and recommendations with the FDIC to respond prior to the March 31, 2019 deadline (FIL-80-2018 and FIL-7-2019). CBAI appreciates the opportunity to participate in this Roundtable and looks forward to the consistent success of applicants obtaining FDIC insurance and creating scores of community banks over the next several years. CBAI encourages the FDIC to move swiftly in that direction.

March 22, 2019